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About
The Project
The project consists of acquiring properties, rehabbing them (if needed), furnishing, and operating them as short-term rentals, mid-term rentals, or long-term rentals (STR(s), MRT(s), or LTR(s)) in and the around Mobile, Alabama market.
Growing demand
The short-term rental market continues to grow and is no longer limited to large urban areas or vacation destinations. Major advantages of STRs is the shorter length of stay and the higher daily rate. With renters going in and out frequently, you can keep up on small repairs before they turn into big problems. This allows the manager to more regularly maintain the property and ultimately reduces large maintenance projects that often take a property out of service. The additional revenue generated by SRTs far outweighs the SRT maintenance costs.
Focus
When comparing similar properties in the same neighborhood, a STR will typically generate two to three times the rental income of a LTR on an annual basis.
Our focus is finding properties that have above-average projected returns operating under STR, MTR, and LTR scenarios. This allows us to operate properties as a MRT or a LTR, should the need arise. The current market and our business model indicate a strong performance and a positive economic impact to the city of Mobile, Alabama. Our team has leveraged our experience, network, and drive to quickly assemble a local presence in Alabama and will continue to develop and grow this fund. The leadership continues to learn from and network with seasoned veterans ensuring that we efficiently and effectively transition from acquisition to stabilization.
Investing in the future
We aim to have each property stabilized within 6 months of purchase and the entire portfolio stabilized by June of 2023.
Aside from the monthly income, Alabama real estate historically appreciates at an annual average of over 5% since 2011. Throughout the term of the fund, we will continuously monitor the property values and opportunities within the market. Once the portfolio is stable and revenues are optimized we will continue to pursue exit strategies and models to increase returns. It is our duty to maximize returns to the investors while minimizing the risks.
“Never depend on a single income. Make an investment to create a second source.” – Warren Buffett